Strong lending boosted Chinabank’s profit
China Banking Corp.’s (Chinabank) profit in the January-to-September period climbed 12 percent, as the group continued to enjoy stronger lending activity.
The Sy family-led bank reported on Thursday a consolidated net income of P22.6 billion from a year ago’s P20.2 billion.
The firm’s stronger first nine-month performance translated to a return on equity of 15.6 percent and a return on assets of 1.6 percent, further cementing its status as one of the market’s most profitable financial institutions.
“The bank’s sustained momentum was driven by the steady expansion of its core businesses and improved net interest margin of 4.73 percent,” it said in a statement.
Net interest income in the period climbed by 14 percent to P60.7 billion.
The company’s nonperforming loan (NPL) ratio remained healthy at 1.5 percent, while it booked P1.9 billion in impairment and credit loss provisions.
This resulted in an NPL coverage ratio of 102 percent, still beating the industry average.
Chinabank ended September with a total balance sheet of P1.9 trillion, a 12-percent improvement year-on-year.
This was fueled by net loans, which grew 19 percent to P1.2 trillion.
Total deposits likewise increased by 9 percent to P1.5 trillion.
Low-cost checking and savings accounts went up by 19 percent to P751 billion.
As it pursues digital transformation and business expansion, operating expenses widened by 13 percent to P28.6 billion.
Total equity rose 6 percent to P195 billion, with book value per share increasing to P72.52.
The lender also sustained a capital adequacy ratio of 15.53 percent and a common equity tier 1 ratio of 14.65 percent, giving the group ample support for future growth.
